Roth IRA Calculator

How to use this calculator

Enter your current Roth IRA balance (or zero if you're starting fresh), your annual contribution, the number of years until retirement, and an expected annual return rate. The calculator projects your account balance at retirement — and unlike a traditional IRA projection, the number shown is what you can actually spend, because qualified Roth withdrawals are tax-free.

The 2026 Roth IRA contribution limit is $7,500 per year ($8,600 if you're 50 or older). Income limits apply: for single filers, the ability to contribute phases out between $153,000 and $168,000 in modified adjusted gross income; for married filing jointly, the phase-out is $242,000 to $252,000. Above those limits, direct Roth contributions aren't allowed — but a backdoor Roth conversion may be an option.

What your result means

The projected balance is your estimated tax-free retirement balance. That distinction matters enormously in planning. A $600,000 traditional IRA and a $600,000 Roth IRA look identical in a calculator — but the Roth account is worth more in after-tax spending power, because you'll owe income taxes on every dollar withdrawn from the traditional account. At a 22% effective tax rate in retirement, a $600,000 traditional IRA is worth roughly $468,000 after taxes. The $600,000 Roth is worth $600,000.

What the math leaves out

This calculator doesn't model the tax benefit of contributing to a traditional IRA or 401(k) instead and investing the tax savings — the full Roth vs. traditional comparison requires modeling both paths including the tax difference on contributions. In practice, the right answer depends on your current tax rate versus your expected retirement tax rate, your state's tax treatment of retirement income, and how long the money stays invested.

Roth IRAs also have a 5-year rule: to withdraw earnings tax- and penalty-free, the account must be at least 5 years old and you must be at least 59½. Contributions (not earnings) can be withdrawn at any time without taxes or penalties, which makes the Roth IRA a useful emergency backup for disciplined savers — though using it that way reduces the compounding benefit.

The case for a Roth IRA

Tax-free growth is the main argument. Contributions go in after-tax, and every dollar of growth — dividends, capital gains, interest — compounds without annual taxes and comes out tax-free in retirement. For younger earners in lower tax brackets today who expect higher income later, this trade is particularly favorable. Roth IRAs also have no required minimum distributions during the owner's lifetime, making them useful for estate planning — money you don't need can stay invested for heirs who inherit the account.

Frequently asked questions

What is a backdoor Roth IRA?
If your income exceeds the Roth contribution limit, you can make a non-deductible contribution to a traditional IRA and then convert it to a Roth — the so-called backdoor Roth. The conversion is taxable on any pre-tax amounts converted, but if your traditional IRA had no pre-existing balance, the conversion is effectively tax-free. This strategy has been legal and widely used for years, though it's worth confirming current rules with a tax professional as Congress periodically revisits it.

Can I contribute to a Roth IRA and a 401(k) in the same year?
Yes. The Roth IRA and 401(k) contribution limits are independent. You can max both in the same year if your income allows. If your employer offers a Roth 401(k), you can split contributions between traditional and Roth within the 401(k) as well — giving you multiple tax diversification levers.

When does a traditional IRA beat a Roth?
When you're in a higher tax bracket today than you expect to be in retirement. A surgeon in peak earning years paying 37% federal tax today who plans to retire on $80,000/year (likely in the 22% bracket) is better off with a pre-tax traditional IRA or 401(k) — they save 37% on the contribution and pay only 22% on the withdrawal. The math requires estimating future tax rates, which is inherently uncertain, which is why many planners recommend holding both types.

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